Egypt's 5Y Credit Default Swap Spread Widened to 798 bps After Government Declared State of Emergency

Egypt's 5Y CDS spread widened to 798 basis points yesterday and pierced through its recent high after massive violence and killings (1, 2) forced Egypt's government to declare a state of emergency. Egypt's 5Y CDS spread, or the cost to insure $10 million of Egypt's government debt, is still well below the highs made in late June/early July when Mohamed Morsi was ousted from power (1, 2). Something to keep an eye on.

Source: CMA, part of S&P Capital IQ

Related: EL-ERIAN: Anyone Following Egypt Needs To Keep An Eye On One Useful Measure, And It's Not The Stock Market (Business Insider, July 3, 2013)

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